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1/8/2014 4:33AM

Why Some Investors Are Bullish on Southeast Asia

While a lot of investors are bailing out of emerging markets like Thailand because of political unrest, Mark Mobius of asset management company Franklin Templeton Investments tells the WSJ's Anjani Trivedi why he is advising his clients to invest in Southeast Asia.

This transcript has been automatically generated and may not be 100% accurate.

... the ... investors fleeing emerging markets ... it plans to sell emerging markets ... I'm a teacher at the fifth of Wall Street Journal digital network and I'm here with Mark Mobius ... executive chairman of Templeton Emerging Markets Group to talk more about this ... I'm I think you for joining us thank you ... in his outlook on emerging markets quite positive given the potential for economic growth in these markets ... but that SEI emerging markets index this year is already down three percent ... and ... you know the markets in general then had shown to school performance why he still bullish on these markets ... three reasons ... one economic growth is still very positive ... in major markets I know this year we expect emerging markets in general ... I'd to be growing at peak times faster than the cookies ... number two ... fundraisers in emerging markets are going to ... be much much higher ... in the developed countries ... and number three the debt levels ... despite all the things you hear about the Chinese banks having nonperforming loans ... the reality is that ... the debt to GDP ... of the nation of Chile is much much slower ... than developed countries ... so the fundamentals are still in place ... higher your finds performed in these difficult periods ... we've had pretty good performance of course we gunned down along with others ... I in Imaging monastery but we've done ... really well ... the interesting thing is that we haven't seen ... the outflow ... from our phones ... he ... the ... inflows and outflows of more or less in balance ... of course they need is gunned down his price is down now ... so that's a sign that ... they're still lot of people who are ... interested in emerging markets in one scene ... how do you manage your ... clients' expectations on deterrence and just in ... terms of how long patients be invested to see ... see some positive returns after that that's very important because ... short-term thinking is that the work ... and when I tell clients in milk the last ten years ... emerging markets have underperformed the US in the world only three ... of those ten years ... and I expect this year ... you see recovery ... simply because so many people are overweight ... the US now ... they have to diversify ... he noted the safety and he wanted reduce risk ... that to be diversified ... you know besides pockets of Value southeast Asia has also largely disappointed in two thousand thirteen ... people were quite bullish on the region for the airline ... is there still a case for this feature or or or or ... have the cracks pushed investors too far away ... his death in the ... great potential in this region ... now what you've had of course the disturbances in Thailand ... you had the political uncertainty and Indonesia with elections coming up ... on the leash has done well Singapore is done well ... Vietnam has done very well because it's one of the ... top frontier markets ... Philippines' been that TV has been quite expensive ... which countries would you suggest ... people put their money into NY ... all the countries have great stocks of mates and I are taking their eye socket I would say right now ... you ... look carefully in Thailand ... even though the ad the notice the difficulty ... the price is meaty come down in the tricky waters yet because ... the political difficulties to last forever ... I would say also Vietnam ... is very interesting market ... although the previous night so that ... I can get to that India ... because he knew now he's having a political change ... which I believe will ... be something more we forms ... that only can be good ... for the economy and stock market ... Chris liked highlighted because they see that ... you know ... among the political protests ... has basically move the ... market loses five percent within a day ... to think that volatility is still something that keeps investors away ... no in a row seat to to ... do is is in the history can see an opportunity that so far this has nothing ... PC these days the bar to these increased demand ... all of the world ... to look at the bar to the indices ... of the US of the world of emerging markets ... you all ... becoming more hostile ... so ... you have ... to be very very ... careful not to be jumping ship so to speak ... with a low volatility ...